Market Organizer Network at Fish Auction; Case Study of Gauang Market, Padang, West Sumatera, Indonesia

INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 09, SEPTEMBER 2019 ISSN 2277-8616 Market Organizer Network At Fish Auction; Case Study Of Gauang Market, Padang, West Sumatera, Indonesia

Firdaus, Ariesta, Sri Rahayu, Nurus Shalihin

Abstract: Market is an important economic structure in almost economic societies. By using market organization and network approach, this study would like to see how market organization works at the Fish Auction (TPI) at Gauang Market. This study was conducted qualitatively in 2015 with data collection method through in-depth interviews, observation, and document studies. The result shows that there were two types of market organizers that determine market at the Fish Auction (TPI) at Gauang Market. The market organizers were linked by three binding network forms. The networks that bound the actors made a position of an actor accessible to the other actors.

Index Terms :Network, Market Organizer, Market Chain, Fish Auction, Traditional Market, ————————————————————

1. INTRODUCTION (TPI) at Gauang Market is a developed traditional fish market THE orientation of economic development in fisheries sector is that was established in 1950s. The population development an effort to the sustainability of fisheries development by and economic growth make the traditional market grow into a encouraging the productivity in fisheries catch and the market that provides daily needs of the people (Zusmelia & expansion of the marketing (Pieris, 2001). One of the Firdaus, 2016a). For the development of fishermen‘s economy, government‘s policy break through is to provide autonomy for Koperasi Minagates (Mina means fish, Gates is a shortened the regions in developing marketing facilities and infrastructure word from Gauang, Teluk Nibung and Sungai Beremas) was for fisheries management (Pieris, 2001). Market fish is one of established in 1960. The name Minagates stands for Mina the infrastructures supporting the economic activity of (fish) Gauang, Teluk Nibung, and Sungai Beremas (Arista et fishermen. In Indonesia, the large-scale fish market is known al., 2016).The cooperation then becomes a partner of TPI known as Tempat Pelelangan Ikan (Fish Auction) and Gauang in fish auction activity. Fish auction, by referencing to abbreviated as TPI was one of the driving factors in improving the Joint Decrees of the Minister of Home Affairs, Minister of the fisheries business and fisherman‘s welfare (Wiyono, Agriculture, and Minister of Cooperatives and Development of 2005)..Historically, fish auction has been known since 1992. Small Enterprises Number 139 Year 1997; Fish auction is established and managed through fishery 902/Kpts/PL.420/9/97; and 03/SKB/M/IX/1997, is a place cooperatives, especially in Java Island, with the aim of where sellers and buyers carry out transaction of buying and protecting fishermen from price-fixing practice by middlemen selling fish through auction. Thus, TPI, according to the and, at the same time, helping fishermen develop their own sociology literature, is a market. As a market, TPI has actors businesses (Hertanto, Kushandayani, Astuti, & Windiani, 2013; and networks who are working on it. Sociology studies have Pramitasari, 2005). In West Sumatera, based on DKP of West discussed market issues, ranging from traditional markets Sumatera data there are 27 units of PPI (Pelabuhan (Agboola, Azizul, Rasidi, & Said, 2018; Zusmelia, Firdaus, & Pendaratan Ikan/Fish Landing Port) and TPI scattered in Ansofino, 2019), modern markets (Najib & Sosianika, 2017; various districts or cities in coastal areas such as Padang Suryadarma, Poesoro, Budiyati, Akhmadi, & Rosfadhila, 2007; Pariaman Regency, Padang City, Agam Regency, Mentawai Utomo, 2011), including in the network approach (Seaman, Islands Regency, and West Pasaman Regency. In the city of McQuaid, & Pearson, 2017). However, network studies at TPI Padang, which is the capital of West Sumatera province, there are quite limited. This study is aimed to investigate the actors are some fish auction places, they are TPI Gauang in and networks working on TPI by using the approach to Kecamatan Lubuk Begalung, TPI Sungai Pisang in Kecamatan economic sociology. Bungus Teluk Kabung, and TPI Pasie Nan Tigo in Kecamatan Koto Tangah (Arista, Rahayu, & Irwan, 2016).The fish auction 2 THEORETICAL REVIEW Market is an important socio-economic institution in society and has been an important interest in social studies especially since 1950s (Swedberg, 1994). In the literature –especially the economy literature- market is often associated as a place of ———————————————— buying and selling between traders and buyers (Lie, 1997). Market, in a simple definition, is a medium where exchanges  Firdaus is currently a Senior Lecturer at Sociology Education can take place. Oxford English Dictionary defines market as Department of STKIP PGRI Sumatera Barat. E-mail: firdaus@stkip- ‘the meeting or congregating together of people for the pgri-sumbar.ac.id purchase or sale of provisions or livestock, publicly exposed,  Ariesta is currently a Lecturer at Sociology Education Department of at a fixed time or place; the occasion or time during which STKIP PGRI Sumatera Barat. E-mail: [email protected] such goods are exposed for sale, also the company of people  Sri Rahayu is currently a Lecturer at Sociology Education Department of STKIP PGRI Sumatera Barat. E-mail: [email protected] at such a meeting‘ (Root, 2007). Broadly speaking, market can  Nurus Shalihin is currently a Senior Lecturer at Religious Studies be understood as an organization that organizes and Department, Faculty of Ushuluddin and Religious Studies, UIN Imam coordinates all activities within it (Estudillo, Sawada, Kajisa, Bonjol Padang, E-mail: [email protected] Fuwa, & Kikuchi, 2010; Root, 2007). In another approach, 37 IJSTR©2019 www.ijstr.org INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 09, SEPTEMBER 2019 ISSN 2277-8616 market is defined as a place where goods and services are maintain healthy milk product quality standards on the market sold to customers at a certain price that is paid with money (Suckert, 2017).Sellers are the main players in market, but (Fligstein, 1996).According to the above definitions, market they are controlled by two other actors. Basically, their can be viewed from two perspective, they are market as a reactions to market organization affect the way market works, place (market place) and as a system (market system). Market but they often involve themselves in organizing markets in a as a market place, according to Oxford Dictionary, is a place collaboration with fellow buyers or sellers. In this case, the where buying and selling occurs. This concept refers to a authors distinguish the difference between switch-role markets market that has been understood by many people; a place and fixed-role markets. The first is a market where sellers can where merchants and buyers meet and exchange their goods turn into buyers, and vice versa. In this type of market, there is or products with other materials. Thus, market that is intended no stable foundation in regulating the market. The second is in this context is a physical market. On the other hand, market the market where sellers have permanent role and buyers as a market system according to business dictionary is a cannot turn into sellers (e.g. automotive product market). In social network that permits interaction between buyers and this type of market, sellers regulate the market for the common sellers. Furthermore, McConnell, Brue & Flyn (2009) even said good (Ahrne et al., 2015).Referring to the theoretical that market system is a gigantic communications system. framework discussed above, this study limits itself to two main Through changes in prices and profits, it communicates issues. First, he author state that market on this study is changes in such basic matters as consumer tastes and elicits market place, which is the place to meet sellers and buyers appropriate responses from businesses and resource and make a transactions to agree on prices for the good. suppliers (McConnell, Brue, & Flynn, 2009). As a market Therefore, in this study the intended market place is a market system, market can be interpreted as a mechanism or system which is a place for fish auction at where the good is fish in governing the market (Zusmelia & Firdaus, various scales. Second, the market organizer in this paper is 2016b).Sociologically, market has been one of the most the market actor at the fish auction. Both of market place and interesting areas of sociological study for the last few decades market organizer is site in Gauang market, Padang city, West (Swedberg, 1994). There are three mainstream theory groups Sumatra province, Indonesia used by sociologists in the study of market, they are network, institution, and performative. The network focuses on the 3 METHOD rational relationships between actors as the material of social This research was conducted as a part of own study at the fish structure, while the institutionalist focuses on how conditions auction (TPI) in Gauang Market, Padang. Gauang Market is and actions are contextualized with market rules, power, and one of 15 traditional markets in the city of Padang, the capital norms, and the performative group considers economic action of West Sumatra province, Indonesia. Gauang market is only as the result of a calculative process involving the technology 6.8 km from Pasar Raya Padang that located in the heart of and specific work performed by the actors (Fligsten & Dauter, Padang City. From the Minangkabau International Airport, the 2007). Network analysis is based on the idea that the most distance is only 31 km. This study was conducted in 2015. The important component of social life does not lie in formal data collected through in-depth interviews with agents or fish institutions where actors operate, or with the attributes and distributors, wholesalers, intermediate traders, small traders, traits of the individuals, in which they are identified (Beckert, and management of Koperasi Minagates and the members. 2010).Beyond the three common approaches in explaining The observation process was conducted to observe and catch market, Ahrne et. al. (2014) offered an organizational the real market activity in TPI Gauang. The document studies approach in explaining market. In the explanation, one of the were carried out to complement the secondary data related to important components of the market organization is the market the completion of this research. The documents studied in this organizer. There are three categories of market organizers. study are the research reports, journal articles, and literature The first is those who set market to generate profits, namely that support the writing of this research. The data analysis was profiteer. The second is those who have no economic interest. performed by systematic testing of the data, categorizing the They engage in market organization on behalf of other people data, and finding the relationships between categories (Afrizal, or organizations such as non-profit organizations. This 2014). category is called an author as someone else. The third category is those who directly involve as sellers and buyers in 4 RESULT certain kind of markets (Ahrne, Aspers, & Brunsson, Market activity is entirely determined by actors involved in the 2015).Furthermore, Ahrne et. al. explained that individual market, either directly or indirectly. At the TPI at Gauang profiteers or organizations that participate in market Market, the actors involved in the market include two organizations for their own economic interests, but they do not categories based on Ahrne‘s three market organizer operate as traders. Those profiteers are divided into three categories. The two categories are profiteer and groups; tax collectors (government), commission takers or sellers/buyers. They were still not identified yet in the Others‘ price differences (brokers, agents etc.) and certifiers research groups process at TPI Gauang. (certification institution). While others are identical to the moralist group that regulates the market according to their 4.1 Profiteer standards issues. The standards are about health, According to Ahrne et al. (2015), where the profiteer are environment, justice, and so on. They set the standardization individuals or organizations that consist of three groups (tax of good products and decent consumption according to their collectors; government, commission takers or price moral stretcher. They do not take any advantage of the differences; brokers, agents, etc., and certifiers; certification standardization they build, but the standardization is a benefit bodies, only two type of profiteer at TPI Gauang. There are tax for other actors. The case of organic dairy products in collector and commission takers. The tax collector is an Germany is an example of how those other actors work to official who is employed officially by the Padang city 38 IJSTR©2019 www.ijstr.org INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 09, SEPTEMBER 2019 ISSN 2277-8616 government. In addition, there are also informal payment and non-permanent traders. Permanent traders are permanent collectors. They are people who take payment for market traders who trade on a daily basis and have permanent trading security.The commission takers consisted of two categories, places in the form of kiosks or stalls in TPI Gauang. They are the category that is directly involved with the market and the the permanent players in the trading cycle. They arrange their category that is not directly involved in the market. The fish in their kiosks and stalls for sale directly to consumers. category of profiteer that is indirectly involved in the market is Non-permanent traders are traders who come to buy fish for the cooperative (koperasi), the owners of ‗bagan‘ (ships) and sell it elsewhere. They are categorized as buyers and sellers anak buah kapal/ABK (ship crew). The cooperative in TPI because they usually sell fish that they purchase at TPI Gauang is only one, that is Koperasi Minagates. The ships Gauang to consumers elsewhere. Their role is in contrast to owners are important actors in the fish auction network. They agen ketek-ketek agent who resell fish to retailers.Buyers are are the ones who own the fishing boats and equipment that fish consumers who come to the market. They buy fish for are used to employ the crews. The types of ships they have their own consumption needs. They are not only people living are motor boat with a crew of 15-20 people. Local people call around TPI, but also those who come from various societies in it as ‗bagan‘. The number of the owners of those big agents in the city of Padang. In the process of buying and selling, there TPI Gauang are 3 people who come from the local district. is a difference between a permanent trader and a non- While the crew (in local term known as Anak Buah Kapal/ABK) permanent trader. Permanent trader usually buy fish from are fishermen who work with the ships owners with wage agen ketek-ketek and pay it later, they will pay it after the fish system or profit sharing system. Their dependence is very high sold to consumers. This kind of transaction goes well because upon the ships owners. Most of them are youth living around of the trust that exists between them. While non-permanent TPI Gauang.Profiteers are who directly involved in market traders buy fish in cash from agen ketek-ketek (small agent). activities are divided into three groups: large, medium, and small. The local community called the large group as a major 5 DISCUSSION agent. The major agent consists of ships owners and outside If referring to the three categories of market organizers agents. Not only taking advantages of fishing activities, the introduced by Ahrne et al. (2015) this study only found two ships owners at the same time also take role as an agent in categories of market organizers in TPI Gauang, that are the process of fish auction. The external agents are collectors profiteer and seller & buyer. This study not found the "other" and suppliers. In certain season, they accommodate fishermen category. It is shows two main issues. First, Gauang TPI does around TPI Gauang, but in other seasons they become as the not meet perfect market standards because it does not have a suppliers of fish needed in TPI Gauang. The external agents complete market organizer as introduced by Ahrne et al. build network with agents from outside Province such as North second, the categorization introduced by Ahrne et al. cannot Sumatera and Aceh.In the medium group category, the be applied to traditional markets. And the authors tend to the profiteer takes role as the auction agent. They are the brokers second argument.Nevertheless, over all of market participants of big dealers and retailers. They act as the agents authorize in TPI Gauang have a relationship between each other. There by a big agent (ships owners) as the organizer of a fish are at least three types of relationships exist between the auction. Their relationship with the ships owners is not only market participants, they are familial relationship, trade based on economic relation, but also familial relation. The relationship, and employment relationship. Familial other medium group category is an intermediary trader or also relationship takes place between the ships owners and the known as an agen ketek-ketek (small agent). They are auction agent conducting the auction process in the TPI. The merchants who buy fish from the auction agent. In the auction, trade relationship takes place between the ships owners and they fight with other agents in getting the fish to be reseller to the outside agents with the auction agent. The auction agent retailers. In local terms, they are known as ―agen ketek-ketek‖. makes deal with agen ketek-ketek that links them to the The fish they get from the auction process are usually reseller retailer. Merchants are dealing with their consumers. to small traders, merchants, and sometimes to consumers. Employment relationship takes place between the ships owners and the crews of the ships. In addition to the 4.2. Seller and Buyer employment relationship, the ships owners and the crews of Seller and buyer category are market participants who are the ships sometimes also have familial relation. directly involved in buying and selling activities (Ahrne et al., 2015). Traders in TPI Gauang consist of permanent traders

Outside Agent Ships Owners/Big Agent Ship Crew

Auction Agent

Small Agent Permanent and non- permanent traders

Consumer

Fig. 1. Market Organizer Network

Trade Relationship

Employment Relationship

Familial relationship

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